Market succumbs to late sell-off, ends lower


Mumbai: Market traded sideways and ended a touch lower today, hit by selling by foreign investors towards the close of the session amid a subdued trend in Europe.

The Sensex succumbed to the pressure, ending down 10.11 points, or 0.04 per cent, at 26,633.13.

The gauge had gained 47.79 points previously.

The NSE Nifty too closed in negative territory with a minuscule fall of 1.75 points, or 0.02 per cent, at 8,190.50.

Sentiment soured after services PMI contracted for the second straight month and the all-crucial GST meet remained deadlocked over dual control, compensation and high-sea taxes.

The upcoming corporate results season and the approaching Union Budget kept investors on their toes.

“The headwinds in service PMI data post demonetisation and the inability to reach a consensus on dual control in GST Council meet added volatility to the market,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Service.

The Nikkei India Services Purchasing Managers’ Index (PMI) stood at 46.8 in December, little changed from November’s 46.7, a proof that demonetisation is taking its toll on the services sector.

The rupee struck a contrarian tone, strengthening 28 paise to end at 68.05.

In Europe, Frankfurt’s DAX fell 0.17 per cent, Paris CAC 0.01 per cent and London’s FTSE 0.03 per cent as investors waited for inflation figures for the euro zone.

But Asia firmed up following overnight gains on the Wall Street driven by optimism about the US economy and strong manufacturing numbers.

RIL slumped 1.99 per cent, ICICI Bank 1.26 per cent and Cipla 1.05 per cent.

However, Bharti Airtel, Bajaj Auto, Wipro, Tata Motors, Hero Motocorp and Asian Paints ended in the green, rising by up to 3.47 per cent.

Banking index dropped, along with oil and gas, PSU and metal.

The broader markets threw up a mixed picture, with small-cap jumping 0.47 per cent and mid-cap declining 0.09 per cent.

Hong Kong shares declined 0.07 per cent while Japan’s Nikkei rose 2.51 per cent and Shanghai gained 0.73 per cent.

Foreign funds sold shares worth Rs 500.49 crore yesterday, as per provisional data. .